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(CNN Business) -
Tesla is one of the most valuable companies in the world.
But there is growing concern on Wall Street that CEO Elon Musk has no clear successor.
While Musk is not likely to step aside at Tesla anytime soon, he clearly has many more interests - some would call them distractions - beyond EVs.
Lately he has been obsessed with cryptocurrencies, especially dogecoin, and spoke about it briefly while presenting "Saturday Night Live".
He is also in charge of SpaceX, another high-profile company.
With all of that in mind, some analysts and fund managers hope Musk will eventually hire a chief operating officer.
Or, at the very least, they want you to announce a Tesla succession plan.
They are right.
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A second leadership
It doesn't make sense that Tesla is essentially a one-man show, while SpaceX has an extremely skilled COO at Gwynne Shotwell, one of that company's early hires, who is capable of taking over the lead if Musk couldn't.
Why doesn't Musk have someone like Shotwell at Tesla?
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If something happens to Musk, I don't know what Tesla would do.
I have pushed the board of directors to have a COO and succession plan, "said Ross Gerber, co-founder and CEO of Gerber Kawasaki, an investment firm that has its largest position in Tesla but recently cut its stake.
"It's absurd for a company worth nearly $ 600 billion to be run this way," Gerber said, "especially since Musk has so much else going on."
Tesla did not respond to CNN Business requests for comment on this story.
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Senior executive left the company
Tesla has suffered a minor brain drain in recent years, with the departure of several high-profile executives.
The latest, and most alarming for Tesla investors, is the departure this week of Jerome Guillén.
The nearly 11-year Tesla veteran had been running the trucking division and previously served in many roles, including president of the automotive division and director of programs on Tesla's Model S sedan.
Guillén's departure underscores how important it is for Musk to have a true operations guru who can focus on the details of the car's core business without being distracted by things like social media memes and cryptocurrencies.
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"Jerome's leaving Tesla is a huge void that will be difficult to fill and increases the pressure to finally hire a COO under Musk," Wedbush Securities analyst Dan Ives said in an email to CNN. Business.
"Guillen has been a key part of the Tesla DNA success story for the past decade and was chosen to lead the plans for heavy trucks, which are now in a state of limbo," added Ives.
Opinions
Analysts would love Musk to have someone to lean on: Steve Jobs had now Apple CEO Tim Cook, and Facebook's Mark Zuckerberg has COO Sheryl Sandberg.
It's also worth noting that Amazon CEO (and space exploration rival) Jeff Bezos plans to step aside next month, handing over the reins to Amazon's head of web services Andy Jassy.
But the position in Tesla now seems surprisingly thin to many Wall Street watchers.
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David Whiston, an automotive analyst at Morningstar, said in an email to CNN Business that the only remaining executive who might make sense as Musk's successor is Andrew "Drew" Baglino, Tesla's senior vice president of powertrain and energy engineering. who has been with the company since 2006.
"Wall Street doesn't have a clear number 2 unless it's Drew Baglino," Whiston wrote, adding that he did not believe the company chose CFO Zach Kirkhorn as its successor.
"Guillen had a lot of operations / manufacturing knowledge that needs to be replaced," Whiston said.
He added that "it will be difficult to find an outsider willing to take on a COO role under Elon" because of Musk's penchant for micromanaging.
Tesla shares have had an electric run, but have cooled off lately
To be sure, many Tesla investors are not overly concerned with life after Musk.
The company has been a phenomenal investment for backers for a long time, increasing more than 1,200% in the last five years.
But investors can still be a bit frustrated by Musk's constant tweets and what seems like a lack of focus and self-discipline.
Tesla shares are down nearly 15% this year, even as the Nasdaq is up 8% and the S&P 500 is up 13%.
Rival US automakers have also left Tesla shares in the dust this year, as investors are excited about its prospects in the EV market.
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Stellantis, formerly Fiat Chrysler, has gained nearly 45% in 2021. GM has risen more than 50% this year, while Ford has soared about 75%.
"It's disappointing to see Jerome walk offstage to the left," said Ives, the Wedbush analyst.
"Musk directs and controls Tesla's strategic vision, but executive power is in short supply at a time when competition is coming from all angles in this green tidal wave of electric vehicles."
Executives Elon Musk Tesla Motors
